On January 1, 2019, Concord Corporation had $1,470,000 of common stock outstanding that was issued at par. It also had retained earnings of $741,500. The company issued 41,500 shares of common stock at par on July 1 and earned net income of $400,000 for the year. Journalize the declaration of a 15% stock dividend on December 10, 2019, for the following independent assumptions. (a) Par value is $10, and market price is $18. (b) Par value is $5, and market price is $21.
Q: On January 1, 2020, Ivanhoe Inc. had the following stockholders' equity balances. Common Stock…
A: The stockholders' equity statement is prepared by the company to calculate the amount of common…
Q: On January 1, 2020, Ivanhoe Inc. had the following stockholders' equity balances. Common Stock…
A: Statement of Changes in Stockholder's equity provides the users of the statements with the…
Q: On January 1, 2020, FAB Co. had 100,000 ordinary shares outstanding. During 2020, the following…
A: On 01.01.2020, FAB Co. had outstanding shares = 100000 During 2020, On March 1, Company had split 2…
Q: The following data were taken from the balance sheet accounts of Masefield Corporation on December…
A: Step 1 The first journal entry is recorded for a declaration of 5% stock dividend under which…
Q: At the beginning of 2019, Taylor Corporation had the following stockholders’ equity balances in its…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: The post-closing trial balance of Carla Vista Corporation at December 31, 2020, contains the…
A: Stockholder equity: Retained earnings plus share capital make up the account on a company's balance…
Q: On January 1, 2021, Sunland Corp. had 459,000 shares of common stock outstanding. During 2021, it…
A: Note: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: Metlock, Inc. reported the following balances at December 31, 2021: common stock $409,000, paid-in…
A: Caluclation of Retained Earnings Opening Retained Earnings - $249000 + Net Income…
Q: Comprehensive Dakota Corporation had the following shareholders' equity account balances at…
A: Definition: Retained earnings: Retained earnings are that portion of profits which are earned by a…
Q: Graham, Inc. began 2020 with 25,000 common shares outstanding and issued a 20% stock dividend on…
A: Earnings per share of the company means all earnings available for each and every common…
Q: On January 1, 2021, Bramble Corp. had 487,000 shares of common stock outstanding. During 2021, it…
A: Formula: Earning per share = Net Income / Weighted average number of shares outstanding or Earning…
Q: The following account balances relate to the stockholders' equity accounts of Sunland Corp. at…
A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…
Q: On January 1, 2021, Novak Corp. had 479,000 shares of common stock outstanding. During 2021, it had…
A: Weighted-Average Common Shares is used as a denominator in computing for earnings-per-share. There…
Q: On January 1, 2021, Windsor Corp. had 488,000 shares of common stock outstanding. During 2021, it…
A: Since the student has posted multiple requirements, we shall answer the first three alone. Thank…
Q: On January 1, 2020, Ivanhoe Corporation had $1,470,000 of common stock outstanding that was issued…
A: On January 1,2020 Ivanhoe corporation had 1470000 of common stock Calculating with option A) Par…
Q: On January 1, 2020, Splish Brothers Inc had the following stockholders' equity balances. Common…
A: The report provides readers of financial statements with additional information regarding…
Q: At the beginning of 2019, Hardin Company had 300,000 shares of $10 par common stock outstanding.…
A: The weighted average number of shares outstanding are calculated as shares outstanding with the…
Q: Wendell Company provided the following pertaining to its accounting year that ended December 31,…
A: Additional paid-in capital on Common stock sold = Sale value of Common stock - Par value of Common…
Q: At the beginning of 2019, Hardin Company had 340,000 shares of $10 par common stock outstanding.…
A: 1. oustanding Shares Months Weighted Average Beginning Balance 340000 2 Months…
Q: Madison Company earned net income of $75,000 during the year ended December 31, 2018. On December…
A: Annual Dividend to Preferred shareholders = Par value of preferred share x rate of dividend =…
Q: At the beginning of 2021, Sunland Company had retained earnings of $402000. During the year Sunland…
A: Retained earnings, ending balance = Retained earnings, beginning balance + Net Income - Cash…
Q: On January 1, 2022, Splish Brothers Inc. had $1,320,000 of common stock outstanding that was issued…
A: Definition: Dividends: Dividends are the rewards to the stockholders for investing their money in…
Q: On January 1, 2021, Novak Corp. had 479,000 shares of common stock outstanding. During 2021, it had…
A: Earnings per share is a financial ratio that indicates a company’s ability to earn revenue for its…
Q: On January 1, 2021, Bramble Corp. had 487,000 shares of common stock outstanding. During 2021, it…
A: GIVEN On January 1, 2021, Bramble Corp. had 487,000 shares of common stock outstanding. During…
Q: On January 1, 2020, Kingbird Corporation had $2,020,000 of $10 par value common stock outstanding…
A: A journal entry is a record of a firm's business activity that is retained in the company's…
Q: On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued…
A: Treasury stock: The shares which were reacquired or bought back by the company, but not formally…
Q: On January 1, 2022, Skysong, Inc. had $1,190,000 of common stock outstanding that was issued at par…
A: Stock dividend is the issue of dividend in the form of shares. In this type of dividend, the entity…
Q: The beginning of 2019, hard and Company had 210,000 shares of $10 par common stock outstanding.…
A: Stock dividend is a type of dividend which is provided to the shareholders. In this type,…
Q: Comprehensive Dakota Corporation had the following shareholders' equity account balances at…
A: Statement of Retained earnings(R/E): it shows the changes in the R/E over the period. The R/E are…
Q: At the beginning of 2019, Hardin Company had 280,000 shares of $10 par common stock outstanding.…
A: The shares that are with investors are said to be issued and outstanding shares.
Q: On January 1, 2019, Osgood Film Studios reported the following alphabetical list of shareholders'…
A: A statement of shareholders' equity details the changes within the equity section of the balance…
Q: On January 1, 2021, Sunland Corp. had 459,000 shares of common stock outstanding. During 2021, it…
A: As you have posted multiple independent questions, we are answering the first three questions.…
Q: On January 1, 2021, Oriole Corp. had 478,000 shares of common stock outstanding. During 2021, it had…
A: Weighted average number of shares = sum of (Time adjustment * No. Of shares)
Q: Notebook Company had the following transactions in 2019, its first year of operations. · Issued…
A:
Q: Sandhill Company reported the following amounts in the stockholders' equity section of its December…
A: The retained earnings are increased by the net income earned during the period and is decreased with…
Q: At the beginning of 2019, Hardin Company had 300,000 shares of $10 par common stock outstanding.…
A: Date Outstanding x Effect of the stock dividend x Effect of split x Fraction of period = Weighted…
Q: The following information is provided for Slickers, Inc. for year 2019: • Preferred stock, 7%, $50…
A: Preferred stock: Preferred stock is the cash raised by the company by issuing preferred shares. This…
Q: Sandhill Company reported the following amounts in the stockholders’ equity section of its December…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Coronado Company reported the following amounts in the stockholders’ equity section of its December…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: The post-closing trial balance of Storey Corporation at December 31, 2020, contains the following…
A: Stockholders' equity refers to the amount that is attributable to the shareholders of the company.…
Q: On January 1, 2020, Frontier Corporation had $1,000,000 of common stock outstanding that was issued…
A: Given information is: Outstanding common stock = $10,00,000 Retained Earnings = $750,000 Net income…
Q: On January 1 2022, cullumber had $1,000000 of common stock outstanding that was issued at par…
A: Stock dividend is one of dividend type in which company does not make any cash dividend payment…
Q: Torres Company began business on June 30, 2018. At that time, it issued 17,500 shares of $40 par…
A: Dividend Distribution : Cumulative Preferred stockholder have the right to receive dividend on…
Q: Splish Company reported the following amounts in the stockholders’ equity section of its December…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Larkspur Company reported the following amounts in the stockholders' equity section of its December…
A: Declared Dividend on common stock = rate of dividend * number of outstanding common stock Declared…
Q: Salalah Mills Company is having 10,000 stocks of 15% OMR 1 par value non-cumulative, Irredeemable…
A: Preference dividend payable = No. of preferred share outstanding x Par value per share x rate of…
On January 1, 2019, Concord Corporation had $1,470,000 of common stock outstanding that was issued at par. It also had retained earnings of $741,500. The company issued 41,500 shares of common stock at par on July 1 and earned net income of $400,000 for the year.
Journalize the declaration of a 15% stock dividend on December 10, 2019, for the following independent assumptions.
(a) | Par value is $10, and market price is $18. | |
(b) | Par value is $5, and market price is $21. |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.Jumbo Corporation reported the following information about its stock on its December 31, 2018, balance sheet: Jumbo Corporation engaged in the following stock transactions during 2019: Required: 1. Does Jumbo Corporation have a simple or complex capital structure? 2. Calculate the number of shares that Jumbo would use to calculate basic EPS for its 2019 income statement.
- Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.